Updates

 

FASB and IASB Convergence Projects


Follow progress of convergence efforts between the U.S. Financial Accounting Standards Board and the International Accounting Standards Board. Links to the most current work plans of the standard setters are provided below, in addition to progress reports from standard setters, frequently asked questions on exposure drafts and other resources to help you keep track of accounting convergence.
 
IASB Workplan
  
FASB Technical Plan
  
AICPA Convergence Corner
The timetable shows the current best estimate of document publication dates. The effective date of amendments and new standards is usually 6-18 months after publication date, although in setting an effective date the Board considers all relevant factors. In appropriate circumstances, early adoption of new standards will be allowed. Links to individual project pages are provided on the Work Plan section of IASB website. (IASB.org)
  
The U.S. Financial Accounting Standards Board provides a schedule to help its constituents monitor the progress of and plan for their involvement in the Board’s standard setting activities. The schedule provides a current estimate of the publication dates of due process documents expected to be issued in the next 6 quarters. Links to individual project pages are provided in this section of the FASB’s website. (FASB.org)
  
Keep up with information regarding the convergence of U.S. GAAP and IFRS. Resources include project status updates, convergence news and summaries of technical issues.



AICPA: Revenue Recognition Proposal Impractical
December 14, 2010 - The AICPA's Financial Reporting Executive Committee (FinREC) this week voiced extensive concerns with a joint FASB-IASB proposed standard on revenue recognition that is intended to apply across all industry sectors. (Journal of Accountancy)

IASB and FASB report continued progress in their work to converge IFRSs and US GAAP
November 29, 2010 - The IASB and the FASB published a progress report on their work to improve IFRSs and US GAAP and to bring about their convergence. This is the standard setters’ third progress report on their work plan. Progress Report (IFRS.org) FASB, IASB: Convergence Priorities on Target for June 2011 (Journal of Accountancy)

FASB Sharpens Focus
November 17, 2010 - Leslie Seidman, acting FASB chairman, said the Board will focus on completing five priority projects by 2011. The projects are part of the joint convergence program with the IASB. CFO.com provides an overview.

Issues being considered by the IFRS Interpretations Committee
Details of items currently being considered by the IFRS Interpretations Committee, including items recently removed from the Interpretations Committee agenda, can be found here. (IFRS.org)


FASB-IASB Exposure Drafts on Leases: Questions and Answers
August 27, 2010 - On August 17, 2010, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) published for public comment exposure drafts on Leases. The American Institute of Certified Public Accountants has developed questions and answers to highlight important aspects of the proposals.


IASB and US FASB Publish Proposals to Improve the Financial Reporting of Leases
August 17, 2010 - The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today published for public comment joint proposals to improve the financial reporting of lease contracts. (FASB.org)
News Release | Exposure Draft


FASB/IASB Proposed Revenue Recognition Standard: Questions and Answers
August 2010 - On June 24, 2010, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) published for public comment an exposure draft, Revenue from Contracts with Customers. The American Institute of Certified Public Accountants has developed questions and answers to highlight important aspects of the project.


Convergence Milestone
July 26, 2010 - FASB and the IASB wrapped up the first of three rounds of issuing proposed standards in their final push toward U.S. GAAP-IFRS convergence, even as they gave themselves an extra six months to complete the ambitious project. (Journal of Accountancy)


Revenue Recognition
On June 24, the U.S. Financial Accounting Standards Board and the International Accounting Standards Board issued a proposed standard for revenue recognition. The core principle would require an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it receives, or expects to receive, in exchange for those goods or services. Following are links to the FASB and IASB Revenue Recognition Project pages:

FASB Project Page – Revenue Recognition
IASB Project Page – Revenue Recognition


IASB and FASB update to G20 Leaders on modified convergence strategy
June 24, 2010 - The IASB and the FASB today wrote to the G20 Leaders outlining their modified strategy for completing their convergence work. The modified strategy retains the target completion date of June 2011 or earlier for the MoU projects for which the boards believe the need for improvement is the most urgent. Download June 24, 2010 Progress Report. (IASB.org, FASB.org)


Spotlight on Work Plan for Global Accounting Standards
The U.S. Securities and Exchange Commission has long promoted the development of a single set of high-quality, globally accepted accounting standards and in February 2010 directed staff to develop and execute a Work Plan regarding this process. (SEC.gov)


Countdown to Convergence
February 25, 2010 - This article provides a synopsis priority convergence projects in the FASB and IASB Memorandum of Understanding. Because the projects are active and subject to change, updates will be posted periodically to the online version of this article at journalofaccountancy.com. (Journal of Accountancy)


IASB and FASB Reaffirm Commitment to Memorandum of Understanding
November 5, 2009 - At their joint meeting last week, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) reaffirmed their commitment to improve International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP) and to bring about their convergence. The Boards also agreed to intensify their efforts to complete the major joint projects described in their 2006 Memorandum of Understanding (MoU), as updated in 2008. (FASB.org) (IASB.org)


FASB/IASB Memorandum of Understanding

After their joint meeting in September 2002, the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued the Norwalk Agreement, in which they “each acknowledged their commitment to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting. At that meeting, the FASB and the IASB pledged to use their best efforts (a) to make their existing financial reporting standards fully compatible as soon as is practicable and (b) to co-ordinate their future work programs to ensure that once achieved, compatibility is maintained.”

In February 2006, the FASB and IASB issued a Memorandum of Understanding (MoU). The MoU set forth the relative priorities within the FASB-IASB joint work programs in the form of specific milestones to be reached by 2008.

In developing the MoU published in 2006, the Boards agreed on priorities and established milestones only to 2008, even though they knew that many of the major standards level projects would not be complete by that date. At their joint meeting in April 2008, the Boards again affirmed their commitment to developing common, high quality standards, and agreed on a pathway to completing the MoU projects, including projected completion dates.

The following is a description of the agreed-upon pathway for completing the MoU projects that discusses separately short-term convergence projects and major joint projects. Also described is the relationship between those MoU projects and the joint conceptual framework project, which is not formally part of the MoU work plan.

 

Completing the February 2006 Memorandum of Understanding:
A progress report and timetable for completion September 2008

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